Dubai: Dubai Financial Market closed higher for a third straight session led all the way by its banking and property stocks as Dubai's landmark urban development plan revived investor hopes about the real estate sector getting back to rising trends.
Dubai's main index jumped 1 per cent to close at 2,600 points bolstered by Dubai Islamic Bank which climbed 2.3 per cent providing the biggest single boost to the index. Other financial stocks to rise were Amlak Finance and Ajman Bank.
Property stocks were not left behind with the emirate's top developer Emaar Properties and its subsidiaries Emaar Malls and Emaar Development all gaining on the prospect that the real estate sector stands to benefit the most from Dubai's 2040 urban development plan designed to more than double its tourism and hotel capacity.
Back on the rise
Emaar Properties ended the day up 1.7 per cent at Dh3.65 after rising as much as a near 2 per cent during the trading session. The stock traded 3.4 per cent higher for the year pulling back from around 20 per cent gains it clocked at some point this year riding high on the prospects of economic activity heading back to normal.
However, a subdued vaccine rollout in parts of the world and resurgence of variants of the virus watered down investor hopes about struggling property prices in Dubai rising back anytime soon. The investor mood was further darkened by lackluster earnings at the property companies and those in other sector.
But it looks like the mega development plan has revived those hopes again and investors looked upbeat once more about the medium and long-term state of real estate prices in the emirate.
The Abu Dhabi Securities Exchange also rose for a third day in a row climbing 0.8 per cent to close at 5,684 points. Banking stocks led the gains followed by their real estate peers. First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank all gained taking their clues from the giant development plan.
Gains on acquisition plan
Aldar Properties rose 2.2 per cent after offering to acquire a majority stake in Egyptian real estate company, Sixth of October Development and Investment (SODIC). It intends to launch a mandatory tender offer for a minimum 51 per cent of the outstanding share capital with indicative price ranging from EGP18 to EGP19 per share.